Do you know why is Dubai so rich?... It’s not because of oil...
Oil is just 1% of Dubai’s GDP, and its brother Abu Dhabi is where the oil really is.
So, to kickstart economic growth, they focused on the following steps:
👉🏼 1/ Incentivise the rich to visit the city - which you do by creating a tax haven...
Realise you’re right in the middle of Asia, Africa and Europe with access to sea - so promote exporters to set up export business here with tax breaks. Also helps them reduce logistics costs.
👉🏼 2/ Make visa processes as easy as possible to attract cheap labour from all neighbouring countries which would help you build the infrastructure for growth of business
👉🏼 3/ Build tourist attractions with the initial capital and more to retain the rich, and give them reasons of lifestyle and not just tax saving to actually move their base here
👉🏼 4/ Once you’ve started concentrating millionaires and billionaires in a place, double down on luxuries and build an entire market around luxury retail, luxury housing, and experiences
Dubai has the highest density of millionaires in the world with over 65000 millionaires in a population of ~3.5 Mn people.
Now, once this base is ready, give them the option of a Golden Visa to come move and start living here with family.
👉🏼 5/ Anything that goes wrong in the world - Ukraine Russia war - the wealthy from Russia start moving here with their money...
Pakistan’s economy crashes... the rich from Pakistan start moving here.
UK taxes are sky high, Brexit starts affecting your business, the European economy is down - people start moving their base to Dubai
Crypto folks don’t have any places to run their business with reasonable political stability... invite them to set up base here (with some regulation)
👉🏼 Dubai is the city, where the global rich move to save taxes, enjoy luxuries, and escape political instability.
Over 5000 millionaires moved to Dubai just in the past one year, and there aren’t enough luxury homes in the tiny city.
Real estate starts booming.
It’s a flywheel.
#dubai #economy #business #rich #casarthakahuja
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